Console Game Production Costs To Increase

Over at everyone's favorite game developer/publisher EA, there is apparently some concern about how the games industry is going to cope with the introduction of the PlayStation 3 and Xbox 2 consoles. EA estimates that the cost to produce games for the systems will be between 100% and 200% more expensive than games for current systems. The costs mean that some smaller game developers will be unable to survive resulting in further consolidation with companies like EA. It is unknown whether the increased costs will be passed on to consumers, but it is unlikely as many feel that games are already too expensive. You can read an article about the changes in the games industry here. EA made $600 million profit in the year ending March 31, 2004.